A small business loan is a specialized funding option to support the financial needs of small and medium-sized businesses. These loans are typically offered by banks, credit unions, and other financial institutions. More recently, online lenders have become a popular alternative due to their competitive terms and less stringent eligibility criteria. Small business loans can be utilized for a variety of expenses, such as acquiring inventory, recruiting new staff, scaling up a business, or covering operational overheads. These loans are available in various forms, making them a viable option for many small businesses.
Since traditional means of business financing can be difficult (and costly) for small businesses to acquire, it is beneficial for business owners to be armed with the right information. Imagine viewing your business credit through the lens of a lender? What could this information tell you? It could tell you how strong of an applicant you are, which in turn might help you decide what a fair offer looks like. It could help you identify ways to become a stronger applicant, thus securing the funds you need. All this and more are true - and the part you’ve been waiting for. . . the how. At mySMBscore you can access valuable insights that can empower your business. With advanced analytics displayed in our user-friendly platform, you can up your business owner game and get that loan you’ve been working so hard for.
Small business loans are available in either a secured, or unsecured agreement. Regardless of the type of loan, small business financing usually entails obtaining a predetermined sum of money from a lender. The borrower enters into an agreement to repay the loan amount, along with interest, within a fixed period of time. With a secured loan, the lender has the added security of collateral, which may make it easier to obtain the loan. When contracting to an unsecured loan, the lender is taking a higher risk, often resulting in higher interest rates. An unsecured loan’s approval is usually determined, along with other factors, by your personal and/or business creditworthiness.
The California economy thrives on small businesses. While a large state, the communities that make up the larger population love local businesses. When we think of a small business perhaps we think of our favorite coffee shop or fruit stand at the Farmer’s Market. A small business in California is simply a business that is independently owned and operated. Furthermore, as defined by the U.S. Small Business Administration a small business is defined as a firm with revenue ranging from $1 million to over $40 million with as little as 100 and up to 1,500 employees. In terms of loan size, generally any amount under $100,000 can be considered small.
If you qualify then, yes. While it may be more challenging to obtain a small business loan in California with bad credit, there are still options available, and taking steps to improve your creditworthiness can improve your chances of being approved. You can also improve your likelihood of loan approval by offering collateral and having a solid business plan. Borrowers with poor credit will often see less favorable offers. Bad credit can be a big roadblock, therefore, we recommend getting ahead of it as soon as you can. Visit mySMBscore to unlock valuable insights that can help you identify ways to improve your business credit so that you can qualify for a business loan in California.
Small businesses in California have access to a variety of loan options. The most suitable loan for your business will depend on your unique financial situation and requirements. Here are a few common options:
Both your personal and business credit scores will be key factors in determining your ability to take out a small business loan in California. While no industry standard exists in California when it comes to what scores will be approved for a loan, you can usually expect lower scores to make it more difficult to obtain favorable loan offers.
While banks and credit unions typically like to see scores of 700 or higher, online lenders often work with borrowers that have a credit score of 620 or higher. Although there are lenders that work with “bad credit,” you’ll likely need to prove that your business is in good financial health.
Due to California's thriving and varied economy, there are many lenders who specialize in providing small business loans, which can make it easier for entrepreneurs to find financing options that fit their needs.
Additionally, California has become one of the top states for small business borrowers, thanks to Senate Bill 1235. This state law mandates small business lenders to meet transparency requirements, ensuring that small businesses have a clear understanding of the terms and conditions of their business loan agreement before signing it.
MySMBscore partners with reputable online lenders such as Credibly, Fora Financial, Fundation, Kapitus, Kickfurther, On Deck and Rapid Finance to present you with loan offers that are tailored to you and your business’s financial circumstances. Our lending platform leverages advanced AI technology to continuously evaluate a vast array of real-time and historical data, including loan performance, accounting records, and macro-economic data from over 1,200 sources - so you can get the exact loan you need to make your California business goals a reality, without all the hassle.
The first step when seeking funding for a small business loan in California is to determine your business needs and loan purpose. Once you’ve outlined your why and understand what you can handle. visit mySMBscore before applying for a loan. At mySMBscore you can review your business credit score and see your credit profile through a lender’s perspective. With access to this information you can work on improving your business’s financial position or check offers with our network of top lending partners. MySMBscore is dedicated to empowering small business owners.
Here are 5 simple steps how to apply for a business loan in California. . .
Qualifying for a small business loan in California is achievable, but you must be prepared. To qualify for a small business loan start by checking your business credit score. After reviewing you can decide if you’re ready to apply for a loan or if you need to improve your standing. Most lenders will have requirements such as time in business, annual revenue, and so forth. We can help you understand what lenders will be looking for. Plus, we can help you connect with top lenders that can offer you a loan.
Looking for a small business loan in California? MySMBscore can help you qualify for a better rate by empowering you with valuable information. By accessing your SMB credit score, understanding its components, and knowing what lenders prioritize, you can improve your financial position and increase your chances of approval. In addition, MySMBscore can connect you with lenders who specialize in small business loans in California.
The first step when seeking funding for a small business loan in California is to determine your business needs and loan purpose. Once you’ve outlined your why and understand what you can handle. visit mySMBscore before applying for a loan. At mySMBscore you can review your business credit score and see your credit profile through a lender’s perspective. With access to this information you can work on improving your business’s financial position or check offers with our network of top lending partners. MySMBscore is dedicated to empowering small business owners. Visit us online and soon you’ll see just how much we can help.